KeyCorp to buy back up to $344 million of its common stock, may hike dividend

KeyCorp said its board has authorized a common stock repurchase program that clears the way for the company to buy back up to $344 million of its shares.
The Cleveland-headquartered banking company also announced that it will evaluate an increase in the company's quarterly common stock dividend at its regular meeting in May.
Both actions were part of the company's capital plan, which was submitted to the Federal Reserve. The Federal Reserve has notified KeyCorp that it has no objections to the capital actions described in the plan.
Key plans to execute the repurchase of its common stock through the open market or in privately negotiated transactions. It anticipates completing the repurchases by March 31, 2013. The reacquired shares will be held as treasury shares and may be reissued for various corporate purposes, according to the company's release.
The board of directors will consider a potential dividend increase — to five cents a share from the current three cents — at its May meeting.
“We are pleased that we received a no objection with respect to our capital plan from the Federal Reserve today,” Beth E. Mooney, Key's chairman and CEO, said. “It allows us to increase our dividends and to start the process of returning capital to our shareholders. Key remains one of the best capitalized banks in its peer group and we are well positioned to execute on our relationship strategy.”
Key's stock closed at $7.88 on Monday.